Bill C-88 (Historical)

An Act to amend the Mackenzie Valley Resource Management Act and the Canada Petroleum Resources Act and to make consequential amendments to other Acts

Part 1 of this enactment amends the Mackenzie Valley Resource Management Act to establish an administration and enforcement scheme in Part 5 of that Act that includes the issuance of development certificates. It also adds an administrative monetary penalty scheme and a cost recovery scheme, provides regulation-making powers for both schemes and for consultation with Aboriginal peoples and it allows the Minister to establish a committee to conduct regional studies. Finally, it repeals a number of provisions of the Northwest Territories Devolution Act that, among other things, restructure the regional panels of the Mackenzie Valley Land and Water Board, but that were not brought into force.
Part 2 of the enactment amends the Canada Petroleum Resources Act to allow the Governor in Council to prohibit certain works or activities on frontier lands if the Governor in Council considers that it is in the national interest to do so.

Mackenzie Valley Resource Management Act

[Michael McLeod, Liberal, Northwest Territories, NT]

Mr. Speaker, I will be splitting my time with the member for Glengarry—Prescott—Russell.

I am very proud to join my colleagues to speak in full support of Bill C-88 today. The Prime Minister stated that no relationship is more important to our government and Canada than the one with indigenous peoples. I am proud that we made that commitment and that we continue to strive to fulfill it.

The bill before us today is an important part of this commitment to me and my constituents in the Northwest Territories. The Mackenzie Valley Resource Management Act was originally passed in 1998. It provides for the establishment of an integrated system of land and water management for the Mackenzie Valley through a series of co-management boards, at which the Dene, Métis, territorial and federal governments share input and decision-making. Although the MVRMA was passed in 1998, the discussions on this type of land and water management system began in the early 1980s during the negotiations of the Sahtu Dene and Metis Comprehensive Land Claim Agreement.

Regional land claim and self-governing regions in the NWT have boards, also called panels, that review and make recommendations about their lands. Unfortunately, regardless of the system that was in place after years of negotiation, a system that was working well and gave the indigenous people the right to oversee how their lands were used, the previous government decided to cut these boards out of the process. I am glad they were not successful.

First, the Tlicho government filed an injunction, later joined by the Sahtu Secretariat. The Supreme Court of the Northwest Territories agreed and granted this injunction, so here it sits. These previous amendments were never brought into force and the regional boards continue to operate efficiently and effectively, as intended.

Our government is dedicated to a renewed relationship with indigenous peoples in the spirit of reconciliation. One of the key elements in achieving true reconciliation is meaningful consultation. That requires real work. We are committed to restoring trust and further strengthening our relationship with indigenous partners in the Northwest Territories by supporting the integrated co-management regime for lands and waters in the Mackenzie Valley.

We need to ensure that the management of our natural resources is done in a way that respects the inherent and treaty rights of the indigenous people. Through Bill C-88, we can ensure sustainable resource development while also protecting the long-term health and well-being of the environment. This proposed legislation was created in a spirit of reconciliation meant to help renew the relationship between the Crown and indigenous peoples in the Northwest Territories through mutual respect and co-operation.

Bill C-88 is a direct response to the concerns of the indigenous governments and organizations respecting the legislative and regulatory framework flowing from their constitutionally protected land claims and self-government agreements. While the previous government ignored these concerns, we know that by working together we can reach a better result.

The amendments proposed by this bill respect the integrity of the land claim agreements the Government of Canada and the Government of the Northwest Territories entered into in good faith. We have heard loud and clear from our indigenous partners that the dissolution of the Gwich'in, Sahtu and Tlicho land and water boards by the previous Conservative government denied indigenous groups their hard-won rights. We have also heard from them that it directly contravened their land claim agreements, which included the creation and management of these boards. Reconciliation is not an empty word to our government.

Actions must follow words in order to move forward and work toward real, lasting and positive change in the relationship between Canada and indigenous peoples. The bill before us today proposes to reverse the board restructuring and reintroduce the other regulatory amendments that have also been on hold. Simply put, indigenous people have the right to oversee how their lands are used, and also to share in the wealth.

Bill C-88 would integrate the perspectives of indigenous people into the future usage of lands and water on their territories by including and incorporating indigenous views and perspectives into the decision-making regarding land and resources.

We must work together to improve the quality of life of indigenous peoples in Canada, and key to achieving this goal is indigenous control over indigenous lands. In order to protect the integrity of land claim agreements and treaty rights, the importance of engagement and consultation must be respected.

The Gwich'in, Sahtu and Tlicho stood up and made it clear that they wanted their voices heard and their rights acknowledged and respected. This bill will ensure that they continue to have a say in what happens to the lands and water they preside over.

I mentioned earlier that there are other amendments in this bill besides those aimed at fixing the restructuring part that has been on hold the past four or so years, so not all of the previous government's amendments were off base. However, they are all tangled up in their restructuring error.

This bill reintroduces these amendments. There are regional studies, board term provisions and new regulatory authorities, to name a few. The amendment to the Canadian Petroleum Resources Act would enable the science-based review currently under way in the Beaufort Sea to be completed without interruption, while at the same time preventing the existing oil and gas rights in the Arctic offshore from expiring before the conclusion of the review. After a one-year consultation with existing rights holders, territorial governments and indigenous governments, everyone agreed on the importance of protecting the unique Arctic offshore environment while pursuing responsible oil and gas activity.

True reconciliation cannot occur until indigenous governments and organizations are fully included in the management of lands and resources in the north. We need to bring the voices of indigenous people into the process in order to have a broader and more complete view of the future of Canada's natural resources. As the Prime Minister has said, “Together, we can build a world where the rights of Indigenous peoples are respected, where their voices are honoured, and where their communities thrive.”

The bill we are debating today will ensure that the unique perspectives of indigenous governments, leaders and communities will be heard and listened to. I urge all of my colleagues today to recognize the importance of incorporating an indigenous perspective into the future decision-making of our natural resources sector and to support this important legislation.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, I cannot imagine Christmas holidays at the house of my colleague from Northwest Territories. When the moratorium was imposed on offshore drilling, his brother, who is the premier, was absolutely outraged.

The member talks about the importance of having that conversation. Perhaps he can tell members whether he deems what occurred to be adequate consultation with the people who will be most impacted by that decision?

[Michael McLeod, Liberal, Northwest Territories, NT]

Mr. Speaker, I want to point out first of all that the Beaufort Sea was not included in the devolution agreement. It was a real frustration to the Government of the Northwest Territories of the day that this one key component that would generate revenues was not included. The Norman Wells oil field was also not included as part of the devolution process.

As we moved forward, the moratorium was brought forward. We should recognize that there was really no activity going on in the Beaufort Sea. I went back and looked at how much money was invested during the five years prior to that. In the five years leading up to this decision, $7 million was invested.

I invite the member to visit some of my coastal communities in the Northwest Territories to talk with some of the Inuvialuit people living there. They are very proud and resilient. They want to have Canadian living standards, like everyone else. They want the economy to thrive. However, they also want to protect their traditional lifestyle. They are very good at hunting and fishing, and supplementing their incomes. They are worried now about climate change. They are worried about oil spills that we do not know how to clean up.

This is timely. We now have the Government of Northwest Territories. We have the indigenous governments. We have the Inuvialuit doing a scientific review. A lot of work has been done, and we are in a better position to make a decision on this.

[Colin Carrie, Conservative, Oshawa, ON]

Mr. Speaker, I thank my colleague for his advocacy for the north. He talks about how important it is to have meaningful consultation and to gain meaningful revenues from resource development for the people in the north.

The challenge we are having across many sectors is with the uncertainty from the policies of the current government. One in particular that keeps coming up is the carbon tax. The member knows that his party has put forth a schedule out to 2022, when we will have a $50 per tonne carbon tax, but nothing after that is specified for up to 2030. The environment minister stood here last week to say that the Liberals were following the advice of the UN report that sees a carbon tax of up to $5,500 per tonne by 2030. The range between $50 a tonne and $5,500 per tonne in an eight-year period is significant. When companies and resource-development companies are making once-in-a-generation investments, they need certainty.

Could he please tell the House what is the recommended price for carbon, or the carbon tax, by the Liberal Party for 2030?

[Michael McLeod, Liberal, Northwest Territories, NT]

Mr. Speaker, as I travel in my riding in the Northwest Territories, I talk to many people, including the the Chamber of Mines, and I meet with the chamber of commerce. I have talked with a lot of the organizations and industries in the Northwest Territories that want to expand. There are several very challenging factors for us in the Northwest Territories.

One challenge is to have certainty with regard to the lands. We are experiencing several sets of negotiations, some of which have been ongoing for longer than 30 years, and industry would like to see certainty. Industry leaders want to see indigenous governments resolve the land tenure issue. That would provide certainty. The indigenous governments want to stand shoulder to shoulder with other governments to participate in the benefits that industry would bring, but they cannot do that until the land tenure issue has been resolved.

The second issue that industry has flagged as recently as several months ago is that we need to invest more in infrastructure. If we are going to provide certainty through a settlement of land claims and self-government, we also have to lower the cost of exploration in the Northwest Territories. That means more airports, better airports, bigger airports. We also need proper roads. We only have 12 communities that are serviced by roads right now, and if we are going to attract industries, we are going to have to start providing transportation infrastructure so that they can come at a reasonable cost. Otherwise, it does not make sense for the industries to come when it costs them three or four times more to operate in the Northwest Territories, or anywhere in the north for that matter, than it does in other parts of Canada or the world.

Those are the issues we have to sort out.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Mr. Speaker, I am pleased to be here today to show my support for Bill C-88, while acknowledging that we are gathering on the unceded traditional territory of the Algonquin people.

Our government is taking a new approach. We are currently conducting extensive consultations with indigenous governments and organizations as well as other key stakeholders on issues that will affect them. This process has helped create a law from which all Canadians can benefit.

Bill C-88 amends the Mackenzie Valley Resource Management Act in direct response to concerns expressed by indigenous groups affected by the previous piece of legislation as well as comments from key stakeholders.

Our indigenous partners have made their opinions quite clear. The Tlicho government and Sahtu Secretariat Incorporated applied to the courts in 2014 and 2015 respectively to defend their rights in accordance with their individual land claim and self-government agreements.

The bill we are debating today corrects the problems caused by the Conservatives and responds directly to the concerns expressed by indigenous governments and organizations. As part of the ongoing reconciliation process, the Minister of Crown-Indigenous Relations asked departmental officials to initiate an ongoing dialogue with indigenous organizations and governments in the Northwest Territories to address their concerns.

On September 23, 2016, the minister sent letters to indigenous groups and stakeholders launching consultations on the draft bill to amend the Mackenzie Valley Resource Management Act in order to address these issues.

Bill C-88 is the result of consultations with indigenous organizations and governments in the Mackenzie Valley, transboundary organizations and governments, resource co-management boards and oil and gas industry organizations.

In addition to indigenous organizations and governments, Canada consulted the Government of the Northwest Territories. Our government also consulted members of the mining and gas and oil industries, including the NWT & Nunavut Chamber of Mines, the Mining Association of Canada, the Prospectors and Developers Association of Canada and the Canadian Association of Petroleum Producers.

Ongoing consultations over the long term with key stakeholders have provided Canada with invaluable insight into the practical nature of the bill before us today. The comments from our partners provided unique perspectives and useful guidance which, in the end, led to the drafting of this bill. That is why proper consultation is important.

Canada recognizes that the Conservatives' legislation was drafted without enough consultation. That is why the Government of Canada ensured that the voices of indigenous groups, the government of the Northwest Territories, and industry representatives were heard at every stage of the process—from initial discussions through to drafting and review. Bringing together stakeholders is the key to developing effective policies and practices. The Government of Canada is holding extensive consultations in order to create processes that satisfy the needs of all parties. That ensures that the final product serves everyone in a positive and productive manner and gets rid of any possible uncertainty regarding natural resources.

In March, the Minister of Crown-Indigenous Relations met with industry groups to better understand their opinion on developing and co-managing resources in the North. Industry plays a major role in creating a stronger and better relationship with governments and indigenous organizations when it comes to protecting, managing and developing Canada's natural resources.

In order to truly make progress on the path to reconciliation with indigenous peoples, industry must be taken into consideration as a key strategic partner alongside all levels of government. By bringing together all the stakeholders, every concern will be addressed as it is raised.

If passed, the amendments this bill makes will contribute to the more efficient, predictable and consistent use and management of land, water and natural resources in the Mackenzie Valley. With the creation of a clearer path for governments and organizations in terms of natural resource management, industry will no longer face the potential uncertainty that hinders its ability to invest in northern Canada.

This law will enhance economic opportunities and growth while protecting the environment for future generations. It addresses concerns expressed by indigenous organizations and governments and respects the framework flowing from their constitutionally protected land claim and self-government agreements. It recognizes the importance of having indigenous peoples actively participate in the co-management of natural resources and of protecting their right to monitor the future of their territory.

The environment, the economy and reconciliation go hand in hand. We need to create a more effective system for everyone, and that is exactly what Bill C-88 accomplishes. I encourage my hon. colleagues to support it.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, at the end of his speech, he said the Liberals would be creating a more efficient system. The reason Bill C-15 amalgamated the boards was based out the McCrank report, which had indicated some significant issues in efficiency, capacity and ability to do things. Therefore, basically the Liberals are reversing things.

The Liberals intend to go back to the original system. What have they done to respond to the issues in the McCrank report outline some serious efficiency problems? On the face of it, what they are doing is moving from what was proposed to be a much more robust system to something more inefficient.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Mr. Speaker, it is important to recognize that we need to consult with indigenous peoples. Whether the government passes laws that would be kiboshed by the courts is at issue here. To get on the pathway to reconciliation, it is important for our government to consult with indigenous peoples. As well, yes, we need to consult with industry. This process would ensure that.

[Colin Carrie, Conservative, Oshawa, ON]

Mr. Speaker, I was really encouraged when the member made some important comments. He said that for this, industry was extremely important and that it needed clarity. His colleague from the Northwest Territories also said that. Therefore, my question for him is the same one I wanted to ask his colleague.

When companies make these once-in-a-generation investments, whether it is an automotive plant or resource development, they need certainty. The Liberals brought in a new policy, their carbon tax, and have only let Canadians know what the price will be until 2022, which is $50 per tonne. However, the United Nations report, which the environment minister has said she is following, states that it could be up to $5,500 per tonne. The member will know that there is a huge gap between $5,500 a tonne and $50 a tonne. When planning for these huge investments with new regulations, if companies do not have that certainty, they cannot make the investments.

What will be the Liberals' price on carbon be in 2030 so these companies, which need to invest now in these once-in-a-generation developments, can go forward with confidence knowing what their costs will be?

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Mr. Speaker, I will not be able to tell him what the price on carbon will be by 2020 because I am not sure if we will still be here. However, under Stephen Harper, the price was going to be $60 a tonne in 2018. I am wondering if the Conservatives are finally going to get on board with providing the industry with predictability? We have told it that it will be $10 per tonne in 2018, $20 per tonne in 2019, $30 per tonne in 2020 and $50 per tonne by 2022.

Does he accept the same position as Stephen Harper, who declared in 2008 that in a decade it would be $60 per tonne? Therefore, today in 2018, it would have been at $60 per tonne.

[Celina Caesar-Chavannes, Liberal, Whitby, ON]

Mr. Speaker, this bill will look to fix some of the problems created by the previous government.

As our government moves to ensure we move forward on the path of true Truth and Reconciliation, I wonder if my hon. colleague has any additional comments on how the bill would ensure recognize the importance of indigenous rights and move toward reconciliation.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Mr. Speaker, we have seen in the past where governments have passed laws. Fortunately, the courts have kiboshed the decisions, because the laws did not respect our Constitution and indigenous peoples.

This bill is a good step forward in reconciling with indigenous peoples, providing clarity to the industry and to them. It is a good step forward to reconciliation.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, it is a pleasure for me to rise to begin my remarks on Bill C-88.

I will be sharing my time with my colleague for Yellowhead.

Bill C-88 speaks to the general context in which we think about oil and gas development in Canada. It speaks to the framework that the government has put in place that allows or does not allow important projects to go forward. I will speak in more general terms about some of those issues during the five minutes I have before question period. After question period, I will continue and speak more specifically about some of the issues that are dealt with directly in Bill C-88.

I am pleased to represent an oil and gas riding. We have something called the “industrial heartland”. We benefit, in particular, from the downstream refining and upgrading component to the energy sector. However, we have many people from our riding who are involved in the direct extraction of our energy resources as well.

Sometimes we hear points made in the House that somehow we should choose between the issue of getting pipelines developed or getting value-added processing done in Canada. People in my community, which is a hub of value-added processing, are very supportive of pipeline development as well. It is not an either/or. In fact, we can do both at the same time. Indeed, we need infrastructure to get our resources to market. At the same time, we are very supportive of policy proposals that facilitate greater energy-related manufacturing and otherwise taking place within Canada.

Under the previous government, we saw four pipelines get built and a number of other projects were in process at the time when there was a change in government. What was the current government's approach when it came to developing vital energy resources? First, it directly killed the northern gateway pipeline project and passed a tanker exclusion bill that sought to make the export of our energy resources from northern B.C. impossible. Even if there were to be a new project proposed that went through all the consultation requirements, that still would be unable to succeed because of Bill C-48.

The government piled all sorts of new conditions on the energy east pipeline project, which led to a decision not to proceed with it. However, let us be very clear. It was the Liberal government changing the rules in the middle of a process, adding additional conditions, that prevented that from going forward. Of course, we have seen its failure thus far with respect to the Trans Mountain pipeline as well. This is really having a chilling effect on development.

I look forward to continuing my remarks after question period.

[The Speaker, Liberal, Geoff Regan]

The hon. member for Sherwood Park—Fort Saskatchewan will have seven minutes remaining in his speech following question period.

The House resumed consideration of the motion that Bill C-88, An Act to amend the Mackenzie Valley Resource Management Act and the Canada Petroleum Resources Act and to make consequential amendments to other Acts, be read the second time and referred to a committee.